Goldman Sachs To Cut Up To 1,800 Jobs In Annual Review Process: Report

New Delhi: Goldman Sachs is gearing up for a round of layoffs which is expected to affect 3 per cent and 4 per cent of its workforce which translates to roughly 1,300 to 1,800 employees. These job cuts are part of the company's routine annual review process, as reported by the Wall Street Journal. The layoffs, which are already underway are expected to impact several divisions within the bank, the report stated.

The layoffs which has already begun are expected to affect multiple divisions within Goldman sachs, according to the report. Goldman Sachs spokesperson Tony Fratto addressed the situation, saying, “Our annual talent reviews are a normal, standard process and not particularly noteworthy.” espite the job cuts, Fratto mentioned that the bank's overall headcount is expected to be higher by the end of the year than it was in 2023.

The report also noted that other major banks follow similar practices, reducing their workforces by identifying and letting go of underperforming employees. In the first quarter of this year, the largest U.S. banks collectively cut over 5,000 jobs to manage costs in a tough economic climate, with Citigroup leading the way by eliminating 2,000 positions.

Historically, Goldman Sachs' annual review process results in workforce reductions ranging from 2 per cent to 7 per cent, depending on the bank’s financial health and market conditions. Last year, the bank reduced its workforce by 6 per cent in January, with further cuts occurring in May and the fall.